Gas Storage Bergermeer (GSB) has 9.25 TWh of uncontracted storage capacity available for Storage Year 2018. Our intention is to:
- Sell 3.25 TWh in a Fixed Price Auction;
- Tender 1 TWh via our Optimization Agreement (OA) to a new OA customer and re-allocate 5 TWh to two of our existing OA customers (out of three).
Please see more details hereunder. A precondition for joining the auction and/or the tender is the signing of our SSSA.
Fixed Price Auction
Standard Bundled Units of Capacity will be allocated on a fixed prices basis (not indexed) and a reserve price of 1.50 €/MWh will apply. Bids can be submitted to the notary (Allen & Overy) via email during a one hour time slot, 11.00-12.00 am CET on Thursday 22 February.
In order to participate in the auction, by 15 February 2018 at the latest, customers must:
- Sign the Auction Rules 2018 (link)
- Provide a Power of Attorney
- Only if requested; provide TAQA with additional information for a credit check and for setting your bidder limit
15/02/2018, 17.00h CET Deadline to provide documents 1-3 above
22/02/2018, 11.00 CET Fixed price auction 3.25 TWh, incl allocation of volumes
26/02/2018 Primary Capacity Agreements signed
Optimization Agreement Tender Process
The tender process for the in total 6 TWh under the OA is a two-leg process, resulting each year in three customers that are selected to optimize the capacity on GSB’s behalf.
The first step is to award the current OA customer that generated most value for GSB during the previous storage year with 3 TWh for the next storage year and second-best performer with 2 TWh to monetize on GSB’s behalf.
The second step is to award to a third customer (not the number one or number two of last year) the remaining 1 TWh.
GSB invites all SSSA customers that are interested in entering an OA for the remaining 1 TWh to respond to this email and provide:
- A firm proposal for the GSB share (%) of the Additional Value and, if applicable, for the Financing costs
- A pitch (one-page maximum) why your company is well equipped to maximize the Additional Value
- Your agreement with the terms and conditions of the GSB Optimization Agreement (link)
- Only if requested; provide TAQA with additional information for a credit check
Based on the responses on 1-4, the remaining 1 TWh will be allocated to the one customer with the most attractive proposition, at TAQA’s sole discretion. At the end of SY18, the intention is to re-distribute 6 TWh again based on a similar OA ranking process.
Timeline OA Tender
26/01/2018, 17.00h CET Deadline to respond on questions 1-4 above
14/02/2018, 17.00h CET Allocate 1 TWh to one customer
28/02/2018 Optimization Agreement signed with selected customer
Please note TAQA may terminate or change the processes as described above at its sole discretion at any time.
Profit Sharing Agreement 2017
TAQA has sold the remaining 5 TWh for the 2017-18 storage year via a tender on a Profit Sharing Agreement (PSA) basis to several customers. The nature of the PSA means that it can capture the upside of increasing DA-winter spreads during the summer and share any additional profits between the storage owner and capacity contractors.
TAQA has sold the remaining 2 TWh for the 2016-17 storage year on 23 June 2016.
TAQA sold the available capacity with a cut-off fixed price of 2.50 €/SBU and a weighted average fixed price of 2.51 €/SBU. There was no reserve price applicable.
Overall demand was more than seven times the capacity on offer. All capacity for the 2016-17 storage year has now been sold.
TAQA had previously sold 39 TWh of capacity for the 2016-17 storage year. In September 2015 we auctioned and sold 5 TWh as short-term capacity for Storage Years 2016-2018.
TAQA sold the available capacity with a cut-off multiplier of 1.22 and a weighted average multiplier of 1.29. Participants could submit up to five bids, for one, two or three years starting from April 2016. The total volume of 5 TWh has been allocated to the three year product.
Overall demand was more than five times the capacity on offer.
In the open seasons held prior to 2014, 13TWh has been sold as long-term capacity. In September 2014 we auctioned and sold 13TWh as short-term capacity for Storage Years 2015-2017.
The auction results were as follows
|Tenor||Offered||Sold||Cut off multiplier|
|3 years||3 TWh||3 TWh||1,15|
|2 years||3 TWh||3 TWh||1,16|
|1 year||7 TWh||7 TWh||1,17|
Overall demand was more than double the capacity on offer. The weighted average multiplier of the capacity sold is around 1,2.
Should you have any questions or comments, or if you wish to be kept informed regarding Gas Storage Bergermeer please contact us.